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S11 tech session draft 2014.03.11

2.
Attention Please
• This is an open meeting of the Technology &
Maintenance Council, held in accordance with ATA
Antitrust Guidelines which are listed in your meeting
packet.
• Audio or video recordings are not permitted at this
session. However, photography is permissible.
• The opinions expressed in this meeting are those of the
individual and not necessarily the opinion of his/her
company nor of TMC unless stated otherwise.

3.
Constructive Comments
Are Always Appreciated!
TMC welcomes your comments, but please make
certain that they are constructive and
appropriate before
you turn in your evaluation sheet!
Thank You for Your Cooperation!

17.
California Authority to Regulate GHG
Under Clean Air Act
• In 2007, U.S. Supreme Court ruled in
Massachusetts v. EPA that GHGs are covered by
the Clean Air Act's definition of air pollutant
• Clean Air Act (CAA) §209(a) and (b)
• §209(a) CAA prevents all states except California from
adopting or attempting to enforce new motor vehicle
emissions standards
• §209(b) EPA must grant California a waiver from the
general prohibitions of § 209(a) if California determines
its standards are, in the aggregate, at least as protective
of public health and welfare as applicable federal
standards
17

40.
Fuel – Provider and Shipper Costing
40
Driver Wages
and Benefits
38%
Fuel
32%
Equipment
16%
Repair and
Maintenance
10%
Permits and
Licenses
4%
* Source: ATRI Research 2011 Update
Average Carrier Cost Breakdown
"Carriers can tell you what all of the
expense line items are, but none of them
can tell you what fuel will be next week."
-Avondale

46.
46
COMPANY OVERVIEW
• Founded by Royal Jones and Jimmy Ray in 1981
• Headquartered in Las Cruces, New Mexico
• $300M in annual revenue
• Excel at offering service to, from and through the Southern
border of the US
• 1,150 mile average length of haul
• Our fleet
– 1,150 trucks
• 850 company trucks
• 300 owner-operators
– 4,700 trailers

50.
Expectations of Upcoming Regulations
$2,000%
$1,500%
$1,000%
$750%
$0#
$500#
$1,000#
$1,500#
$2,000#
$2,500#
2008# 2009# 2010# 2011#
Typical#Cost#per#Trailer#
to#Install#Skirts#
• MVT has and will continue to
embrace most regulations related to
fuel economy
• Fuel savings technology is not just
good for the environment and the
communities we serve—it is good
for business
• Selfishly we would like to see more
industry adoption of fuel savings
technologies to reduce everyone’s
cost per unit and improve ROI

51.
Desires for Future Regulations
• Let the market decide through voluntary programs like
Smartway
• Make sure regulations reduce net emissions
• Considerable opportunity to meet political objectives
through the mandate of Biodiesel
• Per US EPA, there is up to an 86% reduction in greenhouse gas
emissions by substituting petrochemical diesel with Biodiesel
• All terminal fueling at our main terminal in El Paso has been with
B20 Biodiesel since 2012—over 500k gallons per month
Source: Renewable Fuel Standard Program
Regulatory Impact Analysis, US EPA, February 2010

52.
WE BELIEVE SO STRONGLY IN BIODIESEL
• We built our own plant to make it—mostly out of used
cooking oil

68.
President
Obama’s
2013
Climate
Ac:on
Plan:
Commitment
to
a
Phase
2
Regulatory
Program
for
Heavy-­‐Duty
Vehicles
“During
the
President’s
second
term,
the
Administra:on
will
once
again
partner
with
industry
leaders
and
other
key
stakeholders
to
develop
post-­‐2018
fuel
economy
standards
for
heavy-­‐duty
vehicles
…..”
68

69.
Presiden:al
Announcement
“Today, I’m directing the Secretary
of Transportation, Anthony Foxx,
and Gina McCarthy, the
Administrator of the EPA, to develop
fuel economy standards for heavy-
duty trucks that will take us well into
the next decade. They’re going to
partner with manufacturers and
autoworkers and states and other
stakeholders, truckers, to come up
with a proposal by March of next
year [2015], and they’ll complete the
rule a year after that [2016].”
- President Obama, February 18, 2014
69

74.
Other
NHTSA
Research
• Comprehensive
analysis
on
the
need
for
crash
worthiness
standards
on
Class
7
and
8
property
carrying
motor
vehicles
involved
in
interstate
commerce,
including
an
evalua:on
of
the
need
for
roof
strength,
pillar
strength,
air
bags,
and
frontal
and
back
wall
standards
(Report
to
Congress,
Spring
2014)
• Sponsoring
a
second
study
by
the
Na:onal
Academies
of
Science
on
technologies
and
the
regulatory
framework
• Ini:ated
in
2013
• Interim
report
in
early
2014
(to
inform
Phase
2
rulemaking)
• Final
report
in
late
2016
(to
inform
agencies
beyond
Phase
2)
74

78.
Current
GEM
Status
• EPA
modeling
team
is
working
with
SwRI
to
conclude
modeling
development
and
valida:ons
• All
sub-­‐models
have
been
developed
• GEM
is
being
validated
against
three
diﬀerent
trucks
over
a
total
of
24
vehicle
driving
cycles
• Majority
of
the
comparisons
between
simula:ons
and
tes:ng
data
are
within
95%
accuracy
• Extensive
valida:ons
against
massive
vehicle
test
data
are
under
way
whenever
the
tes:ng
data
become
available
78

83.
83
Fleets want…
To know how a technology will
perform in their fleet
To know the trade-offs (e.g.,
weight, maintenance time, driver
acceptance) for fuel savings?
Understanding top performance
limits
Simple sources of information
and a say in the program
Listening to stakeholders
Manufacturers want…
Apples-to-apples comparisons of
technology performance
Innovative standardized test
methods that provide flexibility
and reduce burden
Potential for other types of
technologies